Correlation Between Crossmark Steward and Pax Global
Can any of the company-specific risk be diversified away by investing in both Crossmark Steward and Pax Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Crossmark Steward and Pax Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossmark Steward Equity and Pax Global Environmental, you can compare the effects of market volatilities on Crossmark Steward and Pax Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Crossmark Steward with a short position of Pax Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Pax Global.
Diversification Opportunities for Crossmark Steward and Pax Global
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crossmark and PAX is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity and Pax Global Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pax Global Environmental and Crossmark Steward is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Crossmark Steward Equity are associated (or correlated) with Pax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pax Global Environmental has no effect on the direction of Crossmark Steward i.e., Crossmark Steward and Pax Global go up and down completely randomly.
Pair Corralation between Crossmark Steward and Pax Global
Assuming the 90 days horizon Crossmark Steward is expected to generate 2.21 times less return on investment than Pax Global. But when comparing it to its historical volatility, Crossmark Steward Equity is 1.71 times less risky than Pax Global. It trades about 0.03 of its potential returns per unit of risk. Pax Global Environmental is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,032 in Pax Global Environmental on November 19, 2024 and sell it today you would earn a total of 318.00 from holding Pax Global Environmental or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crossmark Steward Equity vs. Pax Global Environmental
Performance |
| Timeline |
| Crossmark Steward Equity |
| Pax Global Environmental |
Crossmark Steward and Pax Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossmark Steward and Pax Global
The main advantage of trading using opposite Crossmark Steward and Pax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossmark Steward position performs unexpectedly, Pax Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pax Global will offset losses from the drop in Pax Global's long position.| Crossmark Steward vs. Science Technology Fund | Crossmark Steward vs. Icon Information Technology | Crossmark Steward vs. Putnam Global Technology | Crossmark Steward vs. Technology Fund Investor |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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